Saltdean

• Bitcoin has retreated to below $25,000 after reaching a nine- month high on Tuesday.
• Altcoins continue to rally, with stacks (STX) taking the lead and IMX token for Immutable X surging 30%.
• Binance.US’ deal to buy the assets of bankrupt crypto lender Voyager Digital for $1 billion is put on hold while key legal objections are ironed out, following an appeal by the U.S. Trustee.

Bitcoin Falls Back to Below $25K

Bitcoin has retreated back to below $25,000 after reaching a nine-month high on Tuesday at about $26,500. Following the release of the United States Consumer Price Index which showed that inflation rate is slowing down, altcoins continue to rally with stacks (STX) taking the lead and IMX token for Immutable X surging by 30%.

Binance US Deal Put On Hold

Binance.US’ deal of buying assets from bankrupt crypto lender Voyager Digital for $1 billion has been put on hold while legal objections are ironed out by authorities. The move follows an appeal from U.S. Trustee which is concerned that deal would absolve Voyager and its staff from potential liabilities arising from fraudulent activity or negligence in managing customer funds .

Mood Among Clients

Franklin Templeton President and CEO Jenny Johnson will discuss developing crypto-linked investment products in a bear market and her long term view on where markets are headed as well as client sentiment towards digital assets during this period of volatility..

CoinDesk Market Team

The article was written by CoinDesk Markets reporter Lyllah Ledesma currently based in Europe who holds bitcoin, ether and other small amounts of crypto assets as well as senior reporter Omkar Godbole who follows current moves in crypto markets in context every day through CoinDesk’s daily newsletter First Mover..

Conclusion

This article provides insight into latest price moves in cryptocurrency markets along with current news stories related to developments within these markets such as Binance US’s proposed acquisition of Voyager Digital’s assets being put on hold due to legal objections raised by U.S. Trustee branch of Department of Justice and Franklin Templeton President Jenny Johnson discussing developing crypto-linked investment products amid bear market condition along with her long term view regarding cryptocurrencies and sentiment among clients towards digital assets during this period of volatility..

• U.S. lawmakers are planning on reintroducing a bill that will reform the way crypto is treated for tax purposes.
• The Keep Innovation in America Act would narrow the definition of a crypto broker for tax purposes and help create more innovation in the sector.
• The current reporting requirements are hindering innovation in the crypto sector, and this bill aims to provide solutions.

U.S. Lawmakers Reintroduce Crypto Tax Reform Bill

What is the Keep Innovation in America Act?

The Keep Innovation in America Act is a bill introduced by U.S. Rep Patrick McHenry (R-N.C.) and Ritchie Torres (D-N.Y.) that would narrow the definition of a crypto broker for tax purposes to “any person who (for consideration) stands ready in the ordinary course of a trade or business to effect sales of digital assets at the direction of their customers.”

Why Was This Bill Introduced?

Lawmakers believe that current reporting requirements are hindering innovation within the crypto sector, so they want to put forward this reform to encourage further development within this space and shift its development outside of United States borders if needed.

Who Does This Affect?

This bill affects miners, validators, and custodians who currently have to adhere to standards incompatible with blockchain technology’s operation due to existing reporting requirements under current law.

What Are The Benefits Of This Bill?

The benefits of this bill include increased innovation within the US cryptocurrency sector, as well as shifting its development outside US borders if needed which could lead to economic growth within countries that use cryptocurrencies as well as those who develop them overseas.

Conclusion

The Keep Innovation in America Act has been introduced with hopes of reforming how cryptocurrencies are taxed in order to encourage more innovation within this space and potentially shift its development from US borders if necessary which could lead to economic growth both domestically and abroad.

• Vauld, a Singapore-based cryptocurrency lender, has received an extension from a court in Singapore to present its restructuring plan. This will give Vauld protection from its creditors until March 24.
• Last July, Vauld filed for creditor protection after suspending withdrawals, trading and deposits on its platform.
• Two digital asset fund managers have made takeover bids for the crypto lender.

Vauld Gets Extension for Restructuring Plan

Vauld, a Singapore-based cryptocurrency lender, has received an extension by a court in Singapore to present its restructuring plan, giving it protection from its creditors until March 24. The existing legal protection expires on Feb. 28.

Background of Vauld

Last July, Vauld had filed for creditor protection after it suspended withdrawals, trading and deposits on its platform. Two digital asset fund managers have since then made takeover bids for the crypto lender. As of July, Vauld owed creditors $402 million; 90% of which originated from individual retail investor deposits and authorities in India froze assets worth 3.7 billion rupees ($44.7 million) a month after filing for creditor protection.

Takeover Bids

Fellow crypto lender Nexo had been the frontrunner to acquire Vauld but talks broke down at the start of this year according to Bloomberg report last month. Both digital asset fund managers made takeover bids for the crypto lender however no agreement was reached yet as of now .

Current Status

The moratorium has been extended till 24-Mar-2023,” a Vauld spokesperson told CoinDesk via email”There will be another hearing scheduled before that to confirm the final decision about approval of scheme.”

Conclusion

Vauld’s extension gives them more time in order to come up with their restructuring plan and reach an agreement with one of the two digital asset fund managers who have expressed interest in taking over the company or else they risk insolvency if no agreement is reached before March 24th when their legal protection expires again

• Japan will launch a pilot program in April to test the use of its version of a central bank digital currency (CBDC) known as the digital yen.
• The move comes after more than two years of proof-of-concept experiments by the BoJ around the digital yen.
• The move also comes at a time when the BoJ is set for leadership transition, with Kazuo Ueda expected to take over the top job from Haruhiko Kuroda when his second five-year term ends in April.

Japan Launches Pilot Program for Issuing Digital Yen

The Bank of Japan (BoJ), announced on Friday that it will launch a pilot program in April to test its version of a central bank digital currency (CBDC) known as the digital yen.

Proof-of-Concept Experiments

This move follows more than two years of proof-of-concept experiments by the BoJ around the digital yen, even as China’s digital yuan continues to lead the CBDC race globally.

Leadership Transition

The announcement also comes at a time when the BoJ is set for leadership transition, with Kazuo Ueda expected to take over from Haruhiko Kuroda when his second five-year term ends in April.

FTX Japan Customers Get Their Funds Back

FTX Japan customers may be able to withdraw their funds as of mid-February, according to a blog post from Liquid by FTX, which would make them some of the first customers of the collapsed crypto exchange to get their money back.

Japanese Regulatory Framework Makes Recovery Possible

CoinDesk Executive Director of Global Content Emily Parker discusses how Japanese regulation made it possible for FTX Japan customers to get their funds back.

• The EU’s Markets in Crypto Assets (MiCA) regulation is ambitious and sets a high standard globally.
• Article 68, however, goes too far and poses a risk to innovation, privacy and security.
• It is important for regulators to understand that the blockchain industry is still in its early stages of development and that more flexible regulations are needed.

Overview

The European Union’s comprehensive crypto regulation, known as MiCA, is highly restrictive and could limit the growth and innovation of the blockchain industry. In particular, Article 68 poses a threat to the privacy and security of individuals, businesses, communities and nations. Gary Weinstein from Electric Coin Co., creators of Zcash states that it is important for regulators to understand that the blockchain industry is still in its early stages of development and that a one-size-fits-all regulatory approach may not be the best solution.

Risk To Innovation

According to MiCA Article 68, rules for operating a trading platform for crypto assets must prevent the trading of crypto assets with built-in anonymization unless holders of assets can be identified by authorized crypto-asset service providers. This language could have a detrimental impact on the growth and innovation of the blockchain industry by limiting its potential.

Threat To Privacy And Security

Article 68 poses a risk to both privacy and security by forcing stakeholders to identify themselves when they trade their assets on platforms governed by this rule. This puts personal data at greater risk as it is more easily accessible than ever before – leaving individuals vulnerable to malicious actors who could exploit their data or identities for financial gain or other purposes.

Flexible Regulations Needed

As such, it is vital for regulators to take into consideration that blockchain technology is still in its infancy when creating regulations surrounding it – allowing room for flexibility so as not to stifle potential growth or innovation within this sector while also ensuring compliance with regulatory requirements and protecting privacy & security at all times .

Conclusion

Ultimately, if MiCA Article 68 remains unchanged then it could have serious implications on both privacy & security as well as overall innovation within the blockchain sector – something which needs to be taken into consideration before any further steps are taken in regards to regulating this space moving forward .

• Coinbase shares rose 20% after Federal Reserve’s rate hike and Jerome Powell’s speech.
• Barclays note shows Coinbase volumes increased 56% in January from the previous month.
• Crypto-related stocks, including MicroStrategy and Silvergate Capital, rallied on Thursday.

Coinbase Shares Skyrocket After Fed Rate Hike

Coinbase (COIN) shares soared by more than 20% on Thursday following the Federal Reserve’s latest interest rate hike decision and remarks from Fed Chair Jerome Powell. The U.S.-based crypto exchange also gained a boost after winning a dismissal of a proposed class-action lawsuit by customers claiming Coinbase sold them unregistered securities. This news has pushed Coinbase stock up over 100% this year as the crypto industry is recovering from the FTX exchange collapse.

Barclays Note Shows Increasing Volumes for Coinbase

U.K.-based bank Barclays released a note on Thursday showing that Coinbase volumes rose 56% in January from the previous month, and are now near levels seen before FTX collapsed but remain below average for 2022. Most crypto-linked stocks like MicroStrategy (MSTR) and Silvergate Capital (SI) have also been rising along with broader equity markets.

Crypto Industry Recovers From FTX Collapse

The recent surge indicates that the crypto industry is recovering from its dip caused by the FTX exchange collapse last year. Edward Moya, senior market analyst for foreign exchange market maker Oanda, said: “We might be getting six more weeks of winter, but it doesn’t seem like we will be seeing an ice age in crypto.”

Fed Rate Hike Decision Positive For Crypto Markets

The positive outlook of cryptocurrency markets was further bolstered by Powell’s comments during his speech after the latest rate hike decision, where he noted progress in fighting high inflation rates in the U.S.. This news was welcomed positively among investors as it took some pressure off bitcoin prices which had been suffering due to fears of higher inflation rates leading to higher interest rates – something that could potentially lead to lower demand for cryptocurrencies such as bitcoin since it does not pay any interest income or dividends to its holders compared to other traditional assets like stocks or bonds which do pay out dividends or coupon payments respectively.

Conclusion

Overall, this news is being seen as positive for cryptocurrency markets as it may reduce some of the pressure on bitcoin prices while also increasing investor confidence in cryptos overall due to increasing trading volumes at exchanges like Coinbase and bullish sentiment among equity markets linked to cryptos such as those held by MicroStrategy and Silvergate Capital .

• Bittrex, a Seattle-based cryptocurrency exchange, is cutting its staff by more than 80 people due to the new economic environment.
• The layoffs affect employees in most departments across the company.
• Many other crypto exchanges have laid off staff in the wake of declines in cryptocurrency prices and the collapse of the FTX exchange.

Bittrex, a Seattle-based cryptocurrency exchange, has announced it will be laying off more than 80 of its staff due to the “new economic environment”. The layoffs will affect employees in most departments across the company.

The decision comes as a result of the market downturn triggered by multiple failures in the crypto ecosystem, which led to an outright collapse by the end of the year. Bittrex CEO Richie Lai stated in an internal email that the team had been working “aggressively” to reduce expenses and increase efficiencies, but were not successful.

Lai said, “These events have caused us to reset our strategy and balance our investments with the new economic environment in which we find ourselves.”

This news follows similar announcements from other crypto exchanges. In January, U.S.-based exchange Gemini announced a third round of layoffs, while Coinbase said it would cut 20% of its workforce.

The layoffs come in the midst of a turbulent period for the crypto markets. In the last year, cryptocurrency prices have seen a sharp decline and major projects and platforms have failed. This has resulted in a challenging environment for exchanges, as well as other crypto companies.

In response to the layoffs, Bittrex has pledged to provide affected employees with severance packages, outplacement services, and continued healthcare benefits. The company also said that it will do what it can to help them transition to new jobs.

The news of the layoffs from Bittrex is yet another example of the challenging market conditions currently facing the crypto industry. While the layoffs are unfortunate, the company’s commitment to helping its former employees transition to new jobs is a positive sign for the industry.

• Crypto market capitalization dropped 3.5% in the past 24 hours following a decline in U.S. equity markets.
• Ether and dogecoin led the slide among major tokens, falling more than 5%, Cardano’s ADA and Polygon’s MATIC dropped 4%, while bitcoin lost just 1.6%.
• Outside of majors, avalanche (AVAX) fell 7.7% while lido (LDO) dropped over 10%, ending a multi-week bump that saw the token’s value jump 135% in the past month.

The crypto market has seen a pullback in the past 24 hours, following a decline in U.S. equity markets. Major tokens such as Ether, Dogecoin and Cardano’s ADA have all seen decreases, while Bitcoin has held relatively steady, with a 1.6% decrease. This has caused a 3.5% drop in the crypto market capitalization, to just over $1 trillion.

Ether and Dogecoin have both seen over 5% decreases, while Cardano’s ADA and Polygon’s MATIC have dropped 4%. Outside of major tokens, Avalanche (AVAX) has seen a 7.7% decrease, while Lido (LDO) has dropped over 10%. This has ended a multi-week bump that saw Lido’s value jump 135% in the past month.

Conversely, a few tokens have seen increases in the past 24 hours, including Quant (QNT) and Aptos (APT), which have both risen over 4%. The increases in these tokens, combined with the relative stability of Bitcoin, have helped to cushion the effects of the crypto market pullback.

In addition, the pullback has caused upward of $173 million in longs, or bets on higher token prices, to be liquidated. Ether futures saw $86 million in liquidations, while traders of Bitcoin futures lost $46 million.

Overall, the current pullback appears to be more of a bull breather than a bear trend. With Bitcoin still relatively stable, and with a few tokens still trading in the green, the crypto market appears to have the potential to soon recover.

• Frontier launched an in-browser wallet extension for 35 supported blockchains that allows users to interact with staking, transactional and non-fungible token (NFT) activities.
• The wallet can be used to stake tokens, store and transfer NFTs and even transfer tokens between various networks.
• The wallet supports newer blockchains such as Aptos and Sui, which have seen strong interest and engagement in crypto circles in the past few months.

Decentralized finance (DeFi) protocol Frontier has recently launched an in-browser wallet extension that enables users to interact with staking, transactional, and non-fungible token (NFT) activities over 35 supported blockchains. This extension provides users with a unified platform that allows them to securely interact with any decentralized applications (dapps) in one place, eliminating the need to switch between various applications.

The wallet offers a variety of features that make it suitable for a wide range of use cases. With the wallet, users can stake tokens, store and transfer NFTs, and even transfer tokens between different networks, which is known as bridging. Additionally, it supports newer blockchains such as Aptos and Sui, which have seen an increase in interest and engagement in the cryptocurrency community over the past few months.

In addition to these features, the wallet also offers enhanced security. The wallet supports hardware-based security, meaning users can store their assets in a hardware wallet such as a Ledger or Trezor. Furthermore, the wallet also supports multi-signature authentication, which requires two or more users to authorize a transaction before it can be completed.

Overall, the new Frontier in-browser wallet is a great addition to the DeFi space, offering users a unified platform for managing their tokens, staking, and transferring NFTs across various blockchains. With its enhanced security features and support for newer blockchains, the wallet is sure to attract a wide range of users.

• A North Korean hacking group is suspected of carrying out a $100M Harmony network hack
• A pseudonymous blockchain sleuth reported that a part of the funds involved in the attack, worth $63.5 million, was moved over the weekend
• Crypto exchange Huobi blocked the funds involved in the hack on Monday morning

The crypto world was rocked on Monday morning by news of the purported involvement of North Korea’s Lazarus Group in a $100 million hack on the Harmony network. According to an analysis by blockchain research firm Elliptic, the group is believed to have been behind the attack.

Pseudonymous blockchain sleuth ZachXBT reported that a part of the funds involved in the attack, worth $63.5 million (~41,000 ETH), was moved over the weekend. He alerted on Twitter that the funds had been moved through Railgun before being consolidated and deposited in three different exchanges.

Crypto exchange Huobi was quick to respond, blocking the funds involved in the hack on Monday morning. The exchange issued a statement regarding the matter, saying, “Huobi has blocked key addresses associated with the Harmony hack, and actively monitors for deposits, withdrawals and trading related to the malicious addresses. The exchange is working with the Harmony team to ensure that funds remain safe and secure.”

The incident highlights the need for heightened security measures in the crypto world, especially with the increasing threat of attacks from state-sponsored hackers. It also serves as a reminder of the importance of blockchain forensics in the detection of suspicious activity on the blockchain.

The news has sparked discussions in the crypto community and beyond, with many users noting the need for more robust security measures and better user education when it comes to crypto security.